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Eskom Wind Power Curtailment reflects South Africa's lockdown-driven drop in electricity demand, prompting grid-balancing measures as Eskom signals reduced IPP procurement from renewable energy projects during low-demand hours, despite guarantees and flexible generation constraints.

Key Points

A temporary reduction of wind IPP purchases by Eskom to balance surplus grid capacity during the COVID-19 lockdown slump

✅ Demand drop of 7,500 MW reduced need for variable renewables.

✅ Curtailment likely during low-demand early-morning hours.

✅ IPP revenues protected via contract extensions and guarantees.

South African state utility Eskom has told independent wind farms that it could buy less of their power in the coming days, as electricity demand has plummeted during a lockdown, reflecting the Covid-19 impact on renewables worldwide, aimed at curbing the spread of the coronavirus.

Eskom, which is mired in a financial crisis and has struggled to keep the lights on in the past year, said on Tuesday that power demand had dropped by more than 7,500 megawatts since the lockdown started on Friday and that it had taken offline some of its own generators.

The utility supplements its generating capacity, which is mainly derived from coal, by buying power from solar and wind farms, as wind becomes a competitive source of electricity globally, under contracts signed as part of the government’s renewable energy programme.

Spokesman Sikonathi Mantshantsha said Eskom had not yet curtailed power procurement from wind farms but that it had told them, echoing industry warnings on wind investment risk seen by the sector, this could happen “for a few hours a day during the next few days, perhaps until the lockdown is lifted”.

“Most of them are able to feed power into the grid in the early hours of the day. That coincides with the lowest demand period and can highlight curtailment challenges when supply exceeds need. And we now have a lot more capacity than needed,” Mantshantsha said.

During the lockdown imposed by President Cyril Ramaphosa, businesses apart from those deemed “essential services” are closed, mirroring Spanish wind factory closures elsewhere. Many power-hungry mines and furnaces have suspended operations.

Eskom has relatively little of its own “flexible generation” capacity, which can be ramped up or down easily, unlike regions riding a renewables boom in South Australia to export power.

The government has committed to buy up to 200 billion rand ($11.1 billion) of electricity from independent power producers and has issued state guarantees for those purchases.

“They will be compensated for their losses, amid U.S. utility-solar slowdowns being reported - each day lost will be added to their contracts,” Mantshantsha said of the wind farms. “In the end they will not be worse off.”

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Edmonton Electricity Rate Increase signals Alberta RRO changes as the UCP ends the NDP price cap; kilowatt-hour rises to 7.5 cents, raising energy bills for typical households by 3.9 percent in December.

Key Points

The end of Alberta’s RRO cap lifts kWh to 7.5 cents, raising an average Edmonton home’s bill about 3.9% in December.

✅ RRO price cap scrapped; kWh set at 7.5 cents in December.

✅ Average 600 kWh home pays about $7.37 more vs November.

✅ UCP ends NDP-era cap after stakeholder and consumer feedback.

Electricity will be more expensive for some Edmontonians in December after the UCP government scrapped a program that capped rates amid prices spiking in Alberta this year.

Effective Nov. 30, the province got rid of the consumer price cap program for Regulated Rate Option customers.

In 2017, the NDP government capped the kilowatt per hour price at 6.8 cents under a consumer price cap policy, meaning Edmontonians would pay the market rate and not more than the capped price.

In December, kWh will cost 7.5 cents amid expert warnings to lock in rates across Alberta. Typical Edmonton homes use an average of 600 kWh, increasing bills by $7.37, or 3.9 per cent, compared to November.

In Calgary, electricity bills have been rising as well, reflecting similar market pressures.

The NDP created the capacity system to bring price stability to Albertans, though a Calgary retailer urged scrapping the market overhaul at the time.

Energy Minister Sonya Savage said the UCP decided to scrap it after "overwhelming" feedback from consumers and industry stakeholders, as the province introduced new electricity rules earlier this year. 

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India Solar Slowdown and Coal Surge highlights policy uncertainty, grid stability concerns, financing gaps, and land acquisition issues affecting renewable energy, emissions targets, energy security, storage deployment, and tendering delays across the solar value chain.

Key Points

Analysis of slowed solar growth and rising coal in India, examining policy, grid, finance, and emissions tradeoffs.

✅ Policy uncertainty and tender delays stall solar pipelines

✅ Grid bottlenecks, storage gaps, and curtailment risks persist

✅ Financing strains and DISCOM payment delays dampen investment

India, a global leader in renewable energy adoption where renewables surpassed coal in capacity recently, faces a pivotal moment as the growth of solar power output decelerates while coal generation sees an unexpected surge. This article examines the factors contributing to this shift, its implications for India's energy transition, and the challenges and opportunities it presents.

India's Renewable Energy Ambitions

India has set ambitious targets to expand its renewable energy capacity, including a goal to achieve 175 gigawatts (GW) of renewable energy by 2022, with a significant portion from solar power. Solar energy has been a focal point of India's renewable energy strategy, as documented in on-grid solar development studies, driven by falling costs, technological advancements, and environmental imperatives to reduce greenhouse gas emissions.

Factors Contributing to Slowdown in Solar Power Growth

Despite initial momentum, India's solar power growth has encountered several challenges that have contributed to a slowdown. These include policy uncertainties, regulatory hurdles, land acquisition issues, and financial constraints affecting project development and implementation, even as China's solar PV growth surged in recent years. Delays in tendering processes, grid connectivity issues, and payment delays from utilities have also hindered the expansion of solar capacity.

Surge in Coal Generation

Concurrently, India has witnessed an unexpected increase in coal generation in recent years. Coal continues to dominate India's energy mix, accounting for a significant portion of electricity generation due to its reliability, affordability, and existing infrastructure, even as wind and solar surpassed coal in the U.S. in recent periods. The surge in coal generation reflects the challenges in scaling up renewable energy quickly enough to meet growing energy demand and address grid stability concerns.

Implications for India's Energy Transition

The slowdown in solar power growth and the rise in coal generation pose significant implications for India's energy transition and climate goals. While renewable energy remains central to India's long-term energy strategy, and as global renewables top 30% of electricity generation worldwide, the persistence of coal-fired power plants complicates efforts to reduce carbon emissions and mitigate climate change impacts. Balancing economic development, energy security, and environmental sustainability remains a complex challenge for policymakers.

Challenges and Opportunities

Addressing the challenges facing India's solar sector requires concerted efforts to streamline regulatory processes, improve grid infrastructure, and enhance financial mechanisms to attract investment. Encouraging greater private sector participation, promoting technology innovation, and expanding renewable energy storage capacity are essential to overcoming barriers and accelerating solar power deployment, as wind and solar have doubled their global share in recent years, demonstrating the pace possible.

Policy and Regulatory Framework

India's government plays a crucial role in fostering a conducive policy and regulatory framework to support renewable energy growth and phase out coal dependence, particularly as renewable power is set to shatter records worldwide. This includes implementing renewable energy targets, providing incentives for solar and other clean energy technologies, and addressing systemic barriers that hinder renewable energy adoption.

Path Forward

To accelerate India's energy transition and achieve its renewable energy targets, stakeholders must prioritize integrated energy planning, grid modernization, and sustainable development practices. Investing in renewable energy infrastructure, promoting energy efficiency measures, and fostering international collaboration on technology transfer and capacity building are key to unlocking India's renewable energy potential.

Conclusion

India stands at a crossroads in its energy transition journey, balancing the need to expand renewable energy capacity while managing the challenges associated with coal dependence. By addressing regulatory barriers, enhancing grid reliability, and promoting sustainable energy practices, India can navigate towards a more diversified and resilient energy future. Embracing innovation, strengthening policy frameworks, and fostering public-private partnerships will be essential in realizing India's vision of a cleaner, more sustainable energy landscape for generations to come.

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Canada Clean Electricity Regulations 2050 balance net-zero goals with grid reliability and affordability, setting emissions caps, enabling offset credits, and flexible provincial pathways, including support for non-grid facilities during the clean energy transition.

Key Points

A federal plan for a net-zero grid by 2050 with emissions caps, offsets, and flexible provincial compliance.

✅ Emissions cap targeting 181 Mt CO2 from the power sector by 2050

✅ Offset credits and annual limits enable compliance flexibility

✅ Support for remote, non-grid facilities and regional pathways

In December 2024, the Government of Canada announced a significant policy shift regarding its clean electricity objectives. The initial target to achieve a net-zero electricity grid by 2035 has been extended to 2050. This decision reflects the government's response to feedback from provinces and energy industry stakeholders, who expressed concerns about the feasibility of meeting the 2035 deadline.

Revised Clean Electricity Regulations

The newly finalized Clean Electricity Regulations (CER) outline the framework for Canada's transition to a net-zero electricity grid by 2050, advancing the goal of 100 per cent clean electricity nationwide.

• Emissions Reduction Targets: The regulations set a cap on emissions from the electricity sector, targeting a reduction of 181 megatonnes of CO₂ by 2050. This is a decrease from the previous goal of 342 megatonnes, reflecting a more gradual approach to emissions reduction.

• Flexibility Mechanisms: To accommodate the diverse energy landscapes across provinces, the CER introduces flexibility measures. These include annual emissions limits and the option to use offset credits, allowing provinces to tailor their strategies while adhering to national objectives.

• Support for Non-Grid Connected Facilities: Recognizing the unique challenges of remote and off-grid communities, the regulations provide accommodations for certain non-grid connected facilities, ensuring that all regions can contribute to the national clean electricity goals.

Implications for Canada's Energy Landscape

The extension of the net-zero electricity target to 2050 signifies a strategic recalibration of Canada's energy policy. This adjustment acknowledges the complexities involved in transitioning to a clean energy future, including:

• Grid Modernization: Upgrading the electrical grid to accommodate renewable energy sources and ensure reliability is a critical component of the transition, especially as Ontario's EV wave accelerates across the province.

• Economic Considerations: Balancing environmental objectives with economic impacts is essential. The government aims to create over 400,000 clean energy jobs, fostering economic growth while reducing emissions, supported by ambitious EV goals in the transport sector.

• Regional Variations: Provinces have diverse energy profiles and resources, and British Columbia's power supply challenges highlight planning constraints. The CER's flexibility mechanisms are designed to accommodate these differences, allowing for tailored approaches that respect regional contexts.

Public and Industry Reactions

The policy shift has elicited varied responses:

• Environmental Advocates: Some environmental groups express concern that the extended timeline may delay critical climate action, while debates over Quebec's push for EV dominance underscore policy trade-offs. They emphasize the need for more ambitious targets to address the escalating impacts of climate change.

• Industry Stakeholders: The energy sector generally welcomes the extended timeline, viewing it as a pragmatic approach that allows for a more measured transition, particularly amid criticism of the 2035 EV mandate in transportation policy. The flexibility provisions are particularly appreciated, as they provide the necessary leeway to adapt to evolving market and technological conditions.

Looking Forward

As Canada moves forward with the implementation of the Clean Electricity Regulations, the focus will be on:

• Monitoring Progress: Establishing robust mechanisms to track emissions reductions and ensure compliance with the new targets.

• Stakeholder Engagement: Continuing dialogue with provinces, industry, and communities to refine strategies and address emerging challenges, including coordination on EV sales regulations as complementary measures.

• Innovation and Investment: Encouraging the development and deployment of clean energy technologies through incentives and support programs.

The extension of Canada's net-zero electricity target to 2050 represents a strategic adjustment aimed at achieving a balance between environmental goals and practical implementation considerations. The Clean Electricity Regulations provide a framework that accommodates regional differences and industry concerns, setting the stage for a sustainable and economically viable energy future.

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25% Tariff on Canadian Imports threatens New York energy markets, disrupting hydroelectric power and natural gas supply chains, raising electricity prices, increasing gas costs, and intensifying trade tensions, policy uncertainty, and cross-border logistics risks.

Key Points

A U.S. policy imposing 25% duties on Canadian goods, risking higher New York electricity and natural gas costs.

✅ Hydroelectric and gas imports face costlier cross-border flows

✅ Higher utility bills for NY households and businesses

✅ Supply chain volatility and policy uncertainty increase

President Donald Trump announced the imposition of a 25% tariff on all imports from Canada, citing concerns over drug trafficking and illegal immigration. This decision has raised significant concerns among experts and residents in New York, who warn that the tariff could lead to increased electricity and gas prices in the state.

Impact on New York's Energy Sector

New York relies heavily on energy imports from Canada, particularly electricity and natural gas. Canada is a major supplier of hydroelectric power to the northeastern United States, including New York, with its electricity exports at risk amid trade tensions. The imposition of a 25% tariff on Canadian goods could disrupt this supply chain, leading to higher energy costs for consumers and businesses in New York. Justin Wilcox, an energy analyst, stated, "If the tariff is implemented, it could lead to increased costs for electricity and gas, affecting both consumers and businesses."

Potential Economic Consequences

The increased energy costs could have broader economic implications for New York, and some experts advise against cutting Quebec's exports to avoid exacerbating market volatility. Higher electricity and gas prices may lead to increased operational costs for businesses, potentially resulting in higher prices for goods and services, while tariff threats have boosted support for Canadian energy projects that could reshape regional supply. This could exacerbate the cost-of-living challenges faced by residents and strain the state's economy.

Political and Diplomatic Reactions

The tariff has also sparked political and diplomatic reactions, including threats to cut U.S. electricity exports from Ontario that raised tensions. New York Governor Kathy Hochul expressed concern over the potential economic impact, stating, "We are closely monitoring the situation and are prepared to take necessary actions to protect New York's economy." Additionally, Canadian officials have expressed their disapproval of the tariff, and Ontario Premier Doug Ford's Washington meeting underscored ongoing discussions, emphasizing the importance of the trade relationship between the two countries.

Historical Context

This development is part of a broader pattern of trade tensions between the United States and its neighbors. In 2018, the U.S. imposed tariffs on Canadian steel and aluminum, leading to retaliatory measures from Canada. The current situation underscores the ongoing challenges in international trade relations, where a recent tariff threat delayed Quebec's green energy bill and highlighted the potential domestic impacts of such policies.

The imposition of a 25% tariff on Canadian imports by President Trump has raised significant concerns in New York regarding potential increases in electricity and gas prices. Experts warn that this could lead to higher costs for consumers and businesses, with broader economic implications for the state. As the situation develops, it will be crucial to monitor the responses from both state and federal officials, as well as how Canadians support tariffs on energy and minerals may influence policy, and the potential for diplomatic negotiations to address these trade tensions.

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Western Denmark Negative Electricity Prices stem from wind energy oversupply, grid congestion, and limited interconnector capacity via Nord Pool and TenneT, underscoring electrification needs, renewable integration, special regulation, and system flexibility.

Key Points

They are sub-zero power prices from wind oversupply, weak interconnectors, low demand, and balancing needs.

✅ Caused by high wind output, low demand, and export bottlenecks

✅ Limited Nord Pool interconnector capacity depresses prices

✅ Special regulation and district heating absorb excess power

A downturn in the cable connection to Norway and Sweden, together with low electricity consumption and high electricity production, has pushed down European electricity prices to a negative level in Western Denmark.

A sign that the electrification of society is urgently needed, says Soren Klinge, head of electricity market at Wind Denmark today.

The heavy winds during the first weekend of July, unlike periods when cheap wind power wanes in the UK, have not only had consequences for the Danes who had otherwise been looking forward to spending their first days at home in the garden or at the beach. It has also pushed down prices in the electricity market to a negative level, which especially the West Danish wind turbine owners have had to notice.

'The electricity market is currently affected by an unfortunate coincidence of various factors that have a negative impact on the electricity price: a reduced export capacity to the other Nordic countries, a low electricity consumption and a high electricity generation, reflecting broader concerns over dispatchable power shortages in Europe today. Unfortunately, the coincidence of these three factors means that the price base falls completely out of the market. This is another sign that the electrification of society is urgently needed, 'explains Soren Klinge, electricity market manager at Wind Denmark.

According to the European power exchange Nord Pool Spot, where UK peak power prices are also tracked, the cable connection to Sweden is expected to return to full capacity from 19 July. The connection between Jutland and Norway is only expected to return to full capacity in early September.

2000 MWh / hour in special regulation

During the windy weather on Monday morning, July 6, up to 2000 MWh / hour was activated at national level in the form of so-called special regulation. Special regulation is the designation that the German system operator TenneT switches off Danish electricity generation at cogeneration plants and wind turbines in order to help with the balancing of the German power system during such events. In addition, electric boilers at the cogeneration plants also contribute by using the electricity from the electricity grid and converting it to district heating for the benefit of Danish homes and businesses.

'The Danish wind turbines are probably the source of most of the special regulation, because there are very few cogeneration units to down-regulate electricity generation. Of course, it is positive to see that we have a high degree of flexibility in the wind-based power system at home. That being said, Denmark does not really get ahead with the green transition, even as its largest energy company plans to stop using coal by 2023, until we are able to raise electricity consumption based on renewable energy.

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